Citigroup's stock (C) fell sharply by 5.01% during intraday trading on Wednesday, underperforming the broader market as investors reacted to disappointing Q4 earnings and ongoing operational challenges.
The bank reported Q4 revenue of $19.9 billion, missing analyst estimates of $20.93 billion, while operating expenses rose 6% year-over-year. A $1.2 billion loss from the sale of its Russian operations further dented profitability, contributing to adjusted EPS of $1.81 (below consensus). CFO Mark Mason acknowledged the Russia exit was "necessary but costly."
Additional headwinds included the bank's announcement of 1,000 layoffs this week as part of a broader restructuring plan, alongside concerns over potential credit card interest rate caps proposed by the Trump administration. Citigroup warned such policies could "significantly slow economic activity" if implemented.
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